611.5831/193a: Telegram

The Secretary of State to the Minister in Sweden ( Steinhardt )

35. After interview with Mr. Sayre who expressed disappointment with Swedish dilatoriness and warned of possibility of our being forced to withdraw offer made in our note of January 17, Boström exchanged telegrams with Stockholm and is now about to present an official list of desiderata.

I suggest you see the Prime Minister or Minister of Foreign Affairs and have a frank talk with him based upon your conversations in the Department and the following additional: While Sweden values its low tariff policy, it should not overlook that its 1933 imports of American goods was 59 percent less than in 1923, while its exports to the United States declined only 14 percent. Our present policy tends toward lower tariffs, and we hope to be able to grant liberal concessions, but not without reciprocity, for it is only in this way that we can mutually increase trade. The point to stress is the necessity for real concessions from Sweden. In 1933, 87 percent of our imports from Sweden were duty free, and these have been protected during 1934 against new duties or restrictions, in return for which we have not only received no concessions but have been told that we are unlikely to obtain many of real value. The Swedish Government should not overlook that the guarantee was contingent upon more favorable treatment of American commerce and has only temporary effect in its present form.